Canada VCTV examples
Example 1 - Transaction put on hold
Field | Description |
|---|---|
Invoice gross amount | CAD 100.00 |
Vendor charged tax | CAD 4.00 |
GST tax rate | 5% |
PST tax rate | 7% |
Determination calculated GST | CAD 5.00 |
Determination calculated PST | CAD 7.00 |
Total tax due | CAD 12.00 |
Configured undercharge accrual method | Accrue variance |
The invoice goods were purchased in Vancouver, British Columbia.
The transaction gets put on hold. The VCT amount (CAD 4.00) is less than the GST amount (CAD 5.00). Even though the configured accrual method for undercharges is Accrue Variance, no PST amount's accrued because the vendor insufficiently charged the GST amount.
Example 2 - VCT more than Canada GST amount but less than the total tax due
Field | Description |
|---|---|
Invoice gross amount | CAD 1,000 |
Vendor charged tax | CAD 110 |
GST tax rate | 5% |
PST tax rate | 7% |
Determination calculated GST | CAD 50 |
Determination calculated PST | CAD 70 |
Total tax due | CAD 120 |
Configured undercharge accrual method | Accrue variance |
The invoice goods were purchased in Vancouver, British Columbia.
The VCT amount (CAD 110.00) is more than the GST amount but less than the total tax due (CAD 120.00). Determination calculates the undercharged amount and accrues CAD 10.00. The accrued amount's prorated to the taxing authority for the province of British Columbia.